Change Take
— Bulbul Dhawan
India’s hospitality industry will witness investments of $401 million in 2023, real estate firm JLL has revealed in a new report. This is almost four times the transaction volume recorded in 2022.
Hospitality Industry Outlook 2023: A total of 22 hotel deals took place in 2023, the highest number of assets traded in 10 years, JLL said. A quarter of the total investment value is related to hotels under construction in business as well as leisure destinations.
The industry has signed hotels with nearly 25,200 keys and will open more than 12,600 keys in 2023. JLL added that there is significant interest in Tier 2 cities, which account for 54% of the total number of signatures. Jaideep Dang, Managing Director, Hotels & Hospitality Group, India, JLL, said 2023 was a record year in terms of hotel investment as well as the opening and signing of new branded hotels.
The outlook for 2024: In the first three months of 2024, India recorded hotel transaction volumes of $78 million. This was 80% more than the transaction volumes recorded between January and March 2023. Dang believes that the momentum from 2023 will continue this year.
The Airports Authority will inject $3.6 billion in capital to upgrade infrastructure
The Airports Authority of India (AAI) plans capital expenditure of INR 300 billion ($3.6 billion) over the next five years to build and upgrade the country’s airport infrastructure.
The statutory body is also expecting its highest turnover in the financial year 2023-24, projected at INR 150 billion ($1.8 billion). Sanjeev Kumar, chairman of the AAI, said the body is likely to post a pre-tax profit of INR 50 billion ($600 million).
Kumar added that by 2047, Indian airports are likely to handle 3 billion passengers annually. The aviation industry in India is experiencing a significant boom. Between 2014 and 2023, the number of airports in India has doubled, while the number of passengers carried has grown from 60 million to over 150 million.
Online business travel platform Tumodo is entering India
Corporate travel platform Tumodo has launched operations in India. Founded in 2023, the company recently received $35 million in funding. Tumodo aims to capture 5% market share in India by 2027, an ET report said.
A recent report by the Global Business Travel Association (GBTA) says business travel spending in India is expected to reach $38 billion this year. Globally, India is the ninth largest market for business travel spending.
A new airline directive allows passengers to disembark flights in the event of a delay
The latest airline directive allows passengers to disembark in the event of a flight delay caused by bad weather. The Bureau of Civil Aviation Security (BCAS) issued the directive last week. Previously, airlines could hold passengers for up to 12 hours on the ground while waiting for takeoff.
Zulfiqwar Hasan, director general of BCAS, said the concerned airlines and security agencies will take a decision on the disembarkation of the passengers. In the event that an airline does not disembark passengers, airport security may direct them to do so.
Brij Hotels aims to operate 50 boutique hotels in the next five years
Brij Hotels aims to have 50 operational boutique hotels in the next five years. The company currently has eight operating properties in its portfolio. An ET report says that Brij Hotels recently raised $4 million in funding and is planning another round of funding in a year’s time.
A report by HVS ANAROCK says that the global boutique hotel segment has grown by 50% in the past three years. The company is currently witnessing employment growth of 50-55% and expects this to increase.
Vistara will reduce flight operations amid cancellations, delays
Full-service carrier Vistara plans to temporarily reduce its flights, Indian news agency PTI reported. This comes as the airline is witnessing flight cancellations and delays due to a lack of pilots. Vistara canceled nearly 80 flights on Monday and more than 190 were delayed.
The Ministry of Civil Aviation accordingly requested a detailed report from the airline on the situation. Aviation regulator the Directorate General of Civil Aviation has also asked Vistara to submit daily reports on delays and cancellations.
The media reported that the airline’s pilots were not reporting for work in protest against the new pay structure. Vistara’s new pay structure is in line with that of its sister airline Air India before their upcoming merger.
Photo: Radisson Hotel Group to open Uday Palace Navsari, a member of Radisson Individuals, in 2023.
